2019 (4) TMI 1067

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....eedings. 2. The brief facts are that the appellant company is a manufacturer of Sodium Silicate falling under Chapter 28 of the Central Excise Tariff. The dispute covers the period 24/01/2004 to 15/05/2004. The appellant set up the factory as SSI Unit in a backward district of West Bengal. Section 37 of the West Bengal Sales Tax Act allowed the appellant to collect the Sales Tax from their buyers and retain the same. 3. The Revenue was of the view that the appellant was required to include the amount of Sales Tax so collected in the assessable value for the purpose of including Central Excise Duty. The Original Authority as well as the First Appellate Authority upheld the demand for payment of such differential duty. The impugned Orde....

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....nclusion of the retail Sales Tax in the assessable value with the following observations: "23. In view of the aforesaid legal position, unless the sales tax is actually paid to the Sales Tax Department of the State Government, no benefit towards excise duty can be given under the concept of "transaction value" under Section 4 (4) (d), for it is not excludible. As is seen from the facts, 25% of the sales tax collected has been paid to the State exchequer by way of deposit. The rest of the amount has been retained by the assessee. That has to be treated as the price of the goods under the basic fundamental conception of "transaction value" as substituted with effect from 17-2000. Therefore, the assessee is bound to pay the excise dut....